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On-line version ISSN 2222-3436Print version ISSN 1015-8812

S. Afr. j. econ. manag. sci. vol.13 n.2 Pretoria Jan. 2010

Application of the contingent valuation method to estimate the willingness-to-pay for restoring indigenous vegetation in Underberg, Kwazulu-Natal, South Africa1

M Du Preez; S Tessendorf; SG Hosking

Department of Economics, Nelson Mandela Metropolitan University

ABSTRACT

This study estimates the willingness-to-pay (WTP) for a project (i.e. the Working for Water Programme) aimed at removing alien vegetation and restoring indigenous vegetation in Underberg, KwaZulu-Natal, South Africa. The WTP estimate reflects the benefit of preference for indigenous vegetation over alien vegetation. In a survey, a questionnaire was administered to 260 households in the Underberg region during September 2005. It was deduced that the mean WTP for the project was R21.12 in 2005 (R26.40 in 2008), the total WTP was R25 344.00 (R31 680.00 in 2008) and the WTP per hectare was R21.87 (R27.34 in 2008). A valuation function to predict WTP responses was also estimated. The function showed that knowledge of the local Working for Water Programme and income were important determinants of WTP.

DEPARTMENT OF WATER AFFAIRS AND FORESTRY (DWAF). 2001. The Working for Water programme. 2000/1. Annual Report. National Water Conservation Campaign. [ Links ]

DU PLESSIS, L.L. 2003. An assessment of selected non-water benefits of the Working for Water Programme in the Eastern and Southern Cape. Unpublished Masters Dissertation, Port Elizabeth: University of Port Elizabeth. [ Links ]

MARAIS, C. 1998. An economic evaluation of invasive alien plant control programmes in the mountain catchment areas of the Western Cape Province, South Africa. Unpublished doctoral thesis, Stellenbosch: University of Stellenbosch. [ Links ]

TURPIE, J.K., MARAIS, C. & BLIGNAUT, J.N. 2008. The Working for Water programme: Evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa. Ecological Economics, 65: 788-798. [ Links ]

WILDY, E.J. 2003. Effect of different land use practices on invertebrate diversity in Underberg (KwaZulu-Natal, South Africa). Conservation Farming Project Report to National Botanical Institute. [ Links ]

Accepted October 2009

Endnotes

1 The helpful comments made by two anonymous referees are gratefully acknowledged. 2 An anonymous referee felt that this was a controversial point to make. 3 After the pilot study the questionnaire was simplified and improved. 4 This was done in an attempt to reduce mental account bias. 5 R26.40 expressed as a percentage of (157 354m3 x R0.59/m3)/1159ha or R80.10/ha/a.